Do you have a home mortgage and have been considering refinancing? More specifically, is your home “underwater,” meaning that your outstanding balance on your existing home mortgage currently exceeds the value of your home?

If so, then the Home Affordable Refinance Program (HARP) may be a great opportunity for you to refinance your home mortgage, decrease your monthly mortgage payments, and potentially save you a significant amount of money each year.

On average, those who decide to refinance with a HARP home mortgage save around $200 a month, or $2,400 each year, making a HARP refinance a great way to help your monthly budget.

Revisions To The HARP Guidelines

In 2011, there were some significant changes to the HARP guidelines. Before the 2011 revisions, underwater homeowners with a mortgage balance of more than 25% of their home value were not eligible for the program. The revisions removed this cap, allowing the Home Affordable Refinance Program to extend its reach.

The 2011 revisions also removed the need for underwriting and appraisals, and decreased the fees for those seeking to refinance into loans with shorter terms.

Current HARP Guidelines

In order to be eligible for the Home Affordable Refinance Program, you must meet the following requirements:

No missed payments in the last six months

No more than one missed payment in the last 12 month

Loan owned or guaranteed by Fannie Mae or Freddie Mac on or before May 31, 2009

Primary residence with one to four units

Loan-to-value ratio of more than 80%

(NOTE: if you have an FHA, USDA, or VA loan, you don’t meet the HARP guidelines and requirements for refinancing under this program.)

What Is The Loan-To-Value Ratio Of Your Home?

HARP refinance guidelines require a loan-to-value ratio (LTV) of more than 80%. The loan-to-value ratio is incredibly important for those looking to take advantage of HARP. Utilize the following equation to determine if your loan-to-value ratio allows you to meet that criterion of the HARP guidelines:

For instance, if the outstanding balance on your existing loan is $180,000 and your current home value is $175,000, then your LTV is 103%, which meets the Home Affordable Refinance Program eligibility requirements.

If you meet the HARP refinance guideline requirements and you’re looking to refinance your underwater home mortgage but you can’t find a reasonable arrangement from a private lender, then you may wish to consider refinancing through the Home Affordable Refinance Program. Contact a Get A Rate mortgage expert (or call us at 1-866-955-5655) about starting the HARP qualification process!

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Registered NY Mortgage Broker. All NY mortgage loans are arranged with third party lenders - Get A Rate LLC does not directly offer or guarantee NY interest rates or loan programs and does not directly issue commitments or make final decisions on loan terms. Authorized website by the New York State Department of Financial Services.

Get A Rate LLC is an FHA Approved Direct Lending Institution, and is not acting on behalf of or at the direction of HUD/FHA or the Federal government. These programs are not a commitment to lend and program guidelines are subject to change.

Additional Disclosures

If you have any complaints, please reach out to: NJ DOBI, Trenton, NJ. Rates as of 9/26/17. Loans are arranged through third parties. Recent advertised rates are subject to change without notice. Advertised rates are available only on owner-occupied, single-family, residential properties, 80% LTV purchase/rate term.
Fees and charges may apply. An advertised rate is not guaranteed and does not constitute an approval. Not all applicants will be approved. Minimum credit score requirements apply.
Full documentation, acceptable properties, insurance, and additional underwriting is required. Loans are secured by liens against real property. Terms, conditions, and restrictions apply.

Calculations computed by Get A Rate Rent vs. Buy and Affordability calculators are estimations. Get A Rate is not an accounting firm or financial advisor. Please consult a tax professional and/or financial advisor for more accurate information.